Foreclosure Defense

What are your options if you face Foreclosure Action?

The first decision you have to make when you are facing Foreclosure Action, is whether you are going to give into it or are willing to stand up against it and defend it. If you choose the latter option, you must consult with an experienced firm of consumer protection litigators.

A Snapshot of steps leading to Foreclosure

Before we delve into the various stages of the process of foreclosure, we would like to emphasize that the legal proceedings vary from one state to another as per the state law. Seeking information for your case with a firm not based in your state of residence is a big blunder. However certain claims and defenses do come under the federal law, depending on case-to-case basis.

The Foreclosure Process

Lending banks follow the judicial foreclosure process. This process begins when the bank/lender files a lawsuit against the borrower. They are then given a timeline and an opportunity to file a counter claim to defend their rights. The main features of the State’s laws are A) Equitable Action and B) No Judicial Relief for Debtors.

Pre-Foreclosure

The Pre-Foreclosure requirements include a series of mandatory documents and pre-requisites to be stated clearly. Foremost these include existence of two important documents which is the Mortgage deed and the Note from the borrower. This is followed by Notice of the default prepared by the lending bank. Then is required the existence of a valid dispute and finally a way to amicably resolve the conflict.

Foreclosure Litigation

Foreclosure litigation begins with a filing of ‘Lis Pendens’ or litigation pending file against the borrower in the county court. After this, the debtor has 20 days to reply to the summons of the court with the help of an attorney. Based on the response, the court sets a date for the preliminary hearing where both parties are given time to settle amicably. If this fails, a Summary Hearing is set within 45 days after which a Foreclosure sale date is set by the court. This process has many other intermittent follow through steps which can be availed of at the discretion of the court. To take complete advantage of the system, and to fight consistently for your right to save your homes, you must be sure to hire experienced attorneys who can justify your case.

Benefits of Defending Foreclosure Action

Losing your home to Foreclosure is anyone’s worst nightmare. The repercussions can be huge and alarming on both the social and emotional front. It can and is likely to include relocating to another area or city, job changes, living away from family and friends etc. Often, the disturbing impact of such a loss affects the whole family, especially children. There is also a risk of losing a good part of your capital and savings if the home sale results in a deficiency judgment. This could affect your finances for the rest of your life, if you are not careful.

One of the ways to defend your home from foreclosure is to file for Bankruptcy. This gives debtors a substantial timeline to re-possess their home without being evicted. The timeline can range from a good three to five years.

Debtors can resort to many other defense claims against foreclosure. Doing so helps the debtors negotiate with the lenders in an attempt to save their homes with or without filing for bankruptcy. Doing so delays the entire foreclosure process so that the debtors have a chance to work on reclaiming their homes either by looking at alternate means or if lenders delay the process due to some finer points leading them to start the process from the top.

Contact us for a free consultation andSTOP the foreclosure process NOW